The same generally goes with ETFs in that if you own ETFs that pay a dividend, the dividends are deposited into your brokerage account. Most large brokerage firms will let you sign up for a service that will automatically reinvest those dividends. You can also reinvest dividends in exchange for full shares. [The Dividend ETF Comeback.]

However, at a brokerage, a commission will usually apply if you reinvested dividends. If this is something you plan to do frequently, choose the broker with a commission setup that works well for you and your plans.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.